Bitcoin strengthened approximately 0.81% over the past 24 hours to trade around $89,958 on Thursday, recovering from earlier-week turbulence as analysts at Bernstein declared that cryptocurrency markets have "bottomed" following late-2025 selloffs.

The flagship cryptocurrency touched an intraday high of $90,499 before settling back, with prices rebounding as global macro sentiment improved following the de-escalation of U.S.-European trade tensions over Greenland.

Bernstein Calls the Bottom

In a note to clients, Bernstein analysts wrote: "We believe with reasonable confidence that bitcoin and broader digital asset markets have bottomed," pointing to the $80,000 level reached in late November as the floor.

The investment bank maintained its bitcoin price forecast of $150,000 for 2026 and $200,000 for 2027, suggesting substantial upside from current levels.

"The combination of spot ETF inflows, institutional adoption, and supply dynamics post-halving creates a compelling setup for the next leg higher."

— Bernstein Research

Standard Chartered holds a similar view, with a 2026 price target of $150,000—though this was reduced from an earlier $300,000 call in December, reflecting near-term macro uncertainty.

Volatile Start to 2026

Bitcoin's path since October's record high above $126,000 has been anything but smooth. Forced liquidations and selling by long-term holders pushed prices down as much as 35% into year-end, with lows around $80,000 testing investor conviction.

The recovery in early 2026 has been encouraging but choppy. This week alone, bitcoin briefly dipped below $91,000 as geopolitical tensions intensified around Greenland—involving the U.S., Denmark, NATO, the EU, and China. The European Union at one point floated €93 billion in potential retaliatory tariffs against the United States.

Those tensions eased Wednesday when President Trump announced a framework agreement, sparking rallies across risk assets including cryptocurrencies.

Whale Accumulation Supports Prices

On-chain data reveals that large bitcoin holders—so-called "whales"—have been accumulating during the recent price weakness. This pattern historically precedes price recoveries, as institutional and high-net-worth buyers take advantage of volatility to build positions.

"We're seeing significant buying activity below the $90,000 level," noted one crypto market analyst. "Smart money appears to be positioning for the next move higher."

Wide Range of 2026 Predictions

Industry executives and investors forecast a wide range of prices for bitcoin this year, with estimates spanning from a low of $75,000 to a high of $225,000. The spread reflects genuine uncertainty about macro conditions, regulatory developments, and institutional adoption pace.

Key bullish catalysts for 2026 include:

  • Spot ETF flows: Continued inflows into bitcoin ETFs from traditional investors
  • Halving effects: Reduced supply issuance from the 2024 halving supporting prices
  • Corporate treasury adoption: More companies following MicroStrategy's bitcoin strategy
  • Regulatory clarity: Potential for clearer U.S. crypto regulations under new administration

Bearish risks include Federal Reserve policy staying restrictive longer than expected, potential regulatory crackdowns, and competition from central bank digital currencies.

BitGo IPO Marks Milestone

In related crypto market news, BitGo is set to close its IPO today as the first cryptocurrency company to go public in 2026. The offering was priced at approximately $212.8 million, with shares expected to debut on the NYSE.

BitGo, which provides institutional-grade custody and security services, currently holds 2,369 bitcoin on its balance sheet. The successful IPO could pave the way for other crypto companies considering public listings.

Investment Considerations

For investors evaluating bitcoin exposure, several factors merit attention:

  • Volatility remains elevated: Position sizing should reflect the asset's inherent price swings
  • Correlation shifts: Bitcoin increasingly trades with macro risk sentiment
  • Regulatory evolution: Policy clarity could unlock significant institutional capital
  • Portfolio context: Small allocations (1-5%) can provide meaningful diversification benefits

Whether Bernstein's bottom call proves prescient will depend on macro conditions and crypto-specific developments in the months ahead. For now, bitcoin appears to have found footing after a turbulent fourth quarter.